CBRE closes higher for the 3rd day in a row
CBRE Group Inc Class A (CBRE) Technical Analysis Report for Jul 31, 2020 | by Techniquant Editorial Team
Moving higher for the 3rd day in a row, CBRE ended the month -3.12% lower at 43.81 after gaining $0.54 (1.25%) today on high volume, slightly outperforming the S&P 500 (0.77%) following today's earnings report. Trading up to $1.13 lower after the open, the market managed to reverse during the session as bulls took control ending the day above its opening price. Closing above Thursday's high at 43.36, the share confirmed its breakout through the prior session high after trading up to $0.60 above it intraday.
Daily Candlestick Chart (CBRE as at Jul 31, 2020):
CBRE reported earnings of $0.35 per share before today's market open. With analysts having expected an EPS of $0.3, CBRE Group Inc Class A beat market expectations by 16.7%. The company's last earnings report was released on May 7, 2020, when CBRE Group Inc Class A reported earnings of $0.75 per share surpassing market expectations by 7.1%.
Friday's trading range has been $1.76 (4.06%), that's far above the last trading month's daily average range of $1.31. Things look different on the weekly timeframe, where the market's trading range of the last week has been slightly below the market's average weekly trading range. The longer-term, monthly volatility is currently slightly lower than usual for CBRE.
After spiking up to 43.96 during the day, CBRE Group found resistance at the 20-day moving average at 43.92. The last time this happened on July 6th, CBRE lost -4.46% on the following trading day.
The stock shows weakness in the short-term (in accordance with its long-term downtrend) with only the medium-term trend still being bullish.
Buying might accelerate should prices move above the nearby swing high at 45.04 where further buy stops could get activated. Further selling might move prices lower should the market test June's close-by low at 41.61.
Among the 10 market conditions that our pattern recognition engine identified today, the statistics for the Support/Resistance based market condition "Bearish Bounce off SMA 20" stand out. While it is usually interpreted as bearish, it has actually shown to be bullish for CBRE Group. Out of 47 times, CBRE closed higher 57.45% of the time on the next trading day after the market condition occurred. The optimal exit for swing trading this condition on the long side has been after 10 trading days, showing a win rate of 59.57% with an average market move of 1.33%.